Type of purchase organizations in SAP MM

 What are the different ways to organize purchasing organizations?

The different assignment options between company code, plant, and purchasing organization yield the following categories of purchasing organization.

Plant-specific procurement: 

In plant-specific procurement, a purchasing organization is responsible for procuring materials for just one plant.

Assign just one plant of the company code to this purchasing organization under Assignment→ Materials Management → Assign purchasing organization to plant.

Cross-plant purchasing organization: 

If a purchasing organization is to procure materials and services for several plants belonging to a company code, you can set up a cross-plant purchasing organization within the company code. To do so, you assign the purchasing organization to the desired company code. After this, you assign the plants for which the purchasing organization is to be responsible.

Cross-plant purchasing is also known as Company-specific purchasing.

                                            

Cross-company-code purchasing: 

If you want to set up cross-company-code purchasing, you must not assign the purchasing organization to any company code(s) in Customizing. Then, when you create a purchase order, the system will ask you to enter the company code for which you want to procure the material.

Cross-company-code purchasing is also known as Corporate-group-wide purchasing.

Standard purchase organization:

If several purchasing organizations procure for a certain plant, you can define one of them as the standard purchasing organization for the transactions "pipeline procurement", "consignment" and "stock transfers".

In source determination for stock transfers and consignment, the system automatically utilizes this standard purchasing organization. In the case of goods issues of pipeline materials, the purchasing info records of the standard purchasing organization are read.